【By Observer Net, Wang Kaiwen】The Chinese electric vehicle industry is booming, and the gap between the United States and China may continue to widen.

The UK's Financial Times published an article on October 26, pointing out that due to the Trump administration's support for gasoline vehicles, investment in electric vehicles in the United States has dropped significantly, which may further put the United States behind China in the global electric vehicle race.

Since returning to the White House in January this year, Trump has canceled tax incentives for consumers purchasing electric vehicles and proposed abolishing greenhouse gas emission regulations. This contrasts sharply with the support provided by the Biden administration for the electric vehicle industry. As a result, investment in this industry within the United States has also declined significantly.

Data from the US Clean Investment Monitor, a database created by the Rhodium Group and the Massachusetts Institute of Technology, shows that investments related to electric vehicles, including batteries,整车 assembly, and charging equipment, fell by nearly one-third in the third quarter of this year, dropping to $8.1 billion.

Data also show that approximately $7 billion in electric vehicle investment plans were canceled between April and September.

Industry executives and analysts believe that the regression in U.S. support for electric vehicles could affect the industry landscape for several years, enhancing China's advantage in the global electric vehicle competition, and causing the European Union to doubt its plan to ban the sale of gasoline vehicles starting in 2035.

On October 9, 2025, at the electric vehicle factory of BYD in Camaragibe, Brazil. Oriental IC

Hakan Samuelsson, CEO of Volvo Cars, previously said, "We need... to accelerate our pace to compete with Chinese companies." When talking about the shift in White House policy, Samuelsson said, "Once these signals are weakened, everything slows down."

Trump overturned the support for electric vehicles under the Biden administration, warning that electric vehicles would lead to the "total destruction" of the American automotive industry and higher prices for consumers.

The shift in Washington's policies has led to revised downward forecasts for U.S. electric vehicle sales. Data from the New York-based consulting firm AlixPartners show that by 2026, pure electric vehicles will account for 7% of total sales in the United States, almost half of what the company had previously predicted; hybrid vehicles will account for 22%, internal combustion engine vehicles for 68%, and plug-in hybrids for 3%.

According to AlixPartners' forecast, even by 2030, the share of pure electric vehicle sales in the United States will only be 18%, lower than the previous estimate of 25%, while Europe will be 40% and China 51%.

The Financial Times pointed out that the Trump administration's preference for gasoline engines has placed traditional automakers in a dilemma, as they want to make more profits from gasoline vehicles but also worry about losing to Chinese competitors like BYD and Geely in the electric vehicle race.

Mark Wakefield, Global Head of Automotive Markets at AlixPartners, believes that the U.S. re-emphasis on gasoline vehicles is a short-term benefit for the automotive industry, as it will bring billions of dollars in revenue.

However, Wakefield warned that in the long run, as Chinese companies aggressively push forward their electric vehicle development, this will give them an advantage in price, battery technology, and software. "If these (traditional) automakers abandon this model, they could fall behind."

Earlier this month, the multinational automaker Stellantis, which owns brands such as Jeep and Peugeot, announced plans to invest a record $1.3 billion in the United States over the next four years to increase production of gasoline and hybrid vehicles.

Ford's CEO Jim Farley called the revival of gasoline engines "a billion-dollar opportunity." According to reports, Ford recently stated that its electric vehicle business lost $3.6 billion in the first three quarters of this year, while its gasoline and hybrid vehicle business achieved a $2.3 billion operating profit.

When discussing the profitability challenges of electric vehicles, Farley said that competition in this field is becoming increasingly fierce, and the returns are getting lower.

While the U.S. electric vehicle policy is shifting, Chinese electric vehicle companies are increasing their investments in overseas factories.

According to CNBC, a report released by the Rhodium Group in August this year showed that Chinese electric vehicle supply chain companies invested about $16 billion overseas last year, slightly higher than domestic investments of $15 billion. This marked the first time since 2014 that Chinese electric vehicle companies' overseas investments exceeded domestic investments.

This article is exclusive to Observer Net. Unauthorized reproduction is prohibited.

Original: https://www.toutiao.com/article/7565432960796426806/

Statement: The article represents the views of the author. Please express your opinion by clicking the [Up/Down] buttons below.